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Wednesday, May 28, 2014

Apple Confirms $3B Beats Electronics Acquisition

Apple confirmed Wednesday that it has acquired Los Angeles-based Beats Electronics, in a deal worth $3 billion. According to Apple, Beats' brand will remain separate from Apple's own brand, and it will continue to offer both Beats' popular line of headphones and Beats new subscription music service, Beats Music. Apple said that Beats co-founders Jimmy Iovine and Dr. Dre will join Apple as part of the buy. Apple CEO Time Cook, in a statement on the acquisition, said that music "holds a special place within our hearts at Apple" and drove the acquisition. The deal is split between $2.6 billion upfront and $400M in vesting over time. Apple said it expects the deal to close in Q4.